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Analysis of the Netflix Business Model

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Table of contents

  1. Operational Excellence
  2. New Products, Services, and Business Models
  3. Customer and Supplier Intimacy
  4. Survival
  5. Improved Decision Making
  6. Competitive Advantage

Operational Excellence

2017 - Netflix wins its 1st honour, with ‘The White Helmets’ for Best Documentary movie. Netflix hits a hundred million members globally. Netflix signs producer overall deals with Shonda Rhimes and Jenji Kohan. Netflix premieres ‘BRIGHT’, its 1st tent pole action film, major can Smith.

2018 - Netflix wins honors for Best Documentary Feature for ‘Icarus’. Netflix announces overall deals with Ryan potato, African country Barris, Jason Bateman. Netflix’s ‘Summer of Love’ brings back classic rom-coms together with fashionable films

New Products, Services, and Business Models

Through its fortunate startup and also the fast changes that technology introduced over time, Netflix reborn its business model. They went from physical copies handouts to permitting customers streaming their favorite contents from the comfort of their own convenience. Today, the platform has advanced to streaming technologies that have elevated and improved Netflix’s overall business structure and revenue. The platform provides its viewers the flexibility to stream and watch a range of TV shows, movies, documentaries and far additional, through suggests that of employing a code application.

Customer and Supplier Intimacy

Netflix platform was originally designed to make sure that it's straightforward and simple to use. Developers of the web site ensured to associate parts and themes that serves and promotes friendliness and provides a self-setup. Netflix provides client services through means that of the web site portal, email inquiries and users have the choice to succeed in a representative directly, by phonephone and live chat. Users have the choice to opt-in to a live chat session with a Netflix representative. Users will directly chat with a Netflix representative to raise queries and support connected inquiries.

Request for discounts and different special promotional deals that they will qualify or supply such user or subscriber.

Channeling major advertisements, deals, and different promotional deals through Social media channels and different relative platforms to assist gain the high attraction of client and new register users conversions. Social media is additionally wont to inform and update people that operate or square measure at home with the Netflix platform. Such platforms might embrace Facebook, LinkedIn, Instagram, etc.

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Software developers at Netflix area unit at constant innovation. Design and enhance to help manufacture a additional sturdy customer-user experience. Through Netflix’s powerful technological ways in which, innovating the accessibilities has helped to increase customer/user experience utterly. Netflix implemented in several areas that helped to capture the planet market.

Improved Decision Making

Netflix encourages its staff to “make wise choices despite ambiguity”. The corporate empowers its team members not solely to form the choice however to try to to thus “based on the long-run, not close to term”. Debt isn't the difficulty at Netflix. Unable to form strategic, privy choices supported information and truth is their instance concern. If staff don't seem to be creating privy choices with Netflix’s cash, what smart is that the debt within the initial place?

Furthermore, staff “identify root causes, and acquire on the far side treating symptoms” during a world that's low on time, dependent on activity, and distracted by portable notifications, Netflix can have none of it. the corporate encourages its workers to require the time initial to be creative—to guarantee choices, concepts and opportunities area unit properly unreal up—and then it moves into even handed decision-making for the long-run.

In associate interview, Hastings aforementioned, “First principle thinking is that the concept that everything you are doing is underpinned by a foundational belief or initial principles. Rather than blindly following directions or projecting to a method, a primary principle thinker can perpetually raise, ‘What's best for the company?’ and, ‘Couldn't we have a tendency to love this alternative method instead?’”. In alternative words, associate organization’s primary in operation principle have to be compelled to be common sense, not smart administration. once a corporation acknowledges the importance of empowering staff specified they create sound choices on behalf of the company’s long-run goals, it becomes a formula for in operation a extremely engaged personnel.

The former chief talent officer at Netflix, Patty McCord, once said: “We much valued those that had common sense and created the correct calls. we have a tendency to wished folks to be ready to do the correct issue with many context and build the correct calls as a result of they were good folks with common sense”. In alternative words, judgment is at the foundation of the thriving Netflix culture. The corporate could presently possess $20 billion in debt, however thanks to its firm belief within the importance of decision-making, they possibly can still achieve success within the long-run than not.

Competitive Advantage

Netflix’s generic strategy focuses on maximizing the competitive benefits of high operational efficiencies and value effectiveness of knowledge technologies. The company’s intensive growth ways need aggressive selling to expand transnational streaming operations. These company ways square measure supported Netflix’s business model, wherever value diminution and penetration square measure supported. The net company’s business framework implies strategic management support for data technologies for economical operations and international enlargement. Netflix Iraqi National Congress’s operations management implements these strategic implications, guaranteeing that everyone square measures of operations are aligned to strengthen the business model and generic strategy for competitive advantage, and to support the intensive growth ways.

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Analysis of the Netflix Business Model. (2022, September 01). Edubirdie. Retrieved February 29, 2024, from
“Analysis of the Netflix Business Model.” Edubirdie, 01 Sept. 2022,
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Analysis of the Netflix Business Model [Internet]. Edubirdie. 2022 Sept 01 [cited 2024 Feb 29]. Available from:
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